I recently purchased a mobile home park which has 35 total acres, of which approximately 20 are unusable. That portion of the property has a lot of trees on it and it does not have good access or frontage. It’s largely forested with small, unharvestable trees. I’m thinking about donating the land to charity or doing a conservation easement. I do not know a lot about either technique. I nevertheless think the benefits of doing this might involve a possible upfront income tax deduction and/or lower property taxes going forward. Are those notions correct, and does anybody have any guidance about going forward with these or any other options? Thank you.
Before you resort to doing either of these I would look at ways to make the land accessible. This may mean a large culvert, or maybe an easement through a neighboring property, which could make it more valuable and usable. Depends on what is making it inaccessible (e.g. land locked, waterway, etc).
Donation could be an option, but then the charity will be facing the same accessibility issues to address that you do today. And for the conservation easement the appraised value of the property will dictate the extent of your tax relief. If the property is only worth 10K it may not even be worth the hassle.
Consider putting some goats out there and growing some big hardwood trees. Grass stays mowed and the hardwoods can be a trust fund for the kids in 30 years. You’ll also be able to get an agricultural exemption in most states with such a setup, which would keep taxes extremely low in perpetuity.
If you end up keeping it, consider appealing the tax assessment. I’ve had good luck doing this in the past. If the land is really unusable, they may need to assess it as such.
I have 31 acres only 5 of which was homes on it. The additional acreage is heavily forested. We have extensive walking trails through out the area that the residents enjoy using. The land has no real value as it is in a rural area.
They like it and I consider it a benefit in attracting quality retired tenants looking for the quiet life.
You may also consider selling the additional land to a property owner who shares a border with it.
Is the park on private water/ sewer or city? If you have your own well(s) sewer system there is no such thing as to much land.